In the second quarter of 2026, the global ocean freight market experienced its most severe price surge since the pandemic. According to data from the Shanghai Shipping Exchange on June 18, the SCFI index rose for eight consecutive weeks, reaching 3,121.69 points, a single-week increase of 136.47 points or 4.57%, erasing all first-quarter losses and hitting a new yearly high. Rates surged across all major routes, with weekly price differences of over $1,000.
Freight Surge: US Routes Lead, South America Breaks $8,000
US routes showed the most dramatic increases. The US West Coast rate reached $5,683 per FEU, up $582 in a single week, a weekly gain of 11.41%. The US East Coast rate hit $6,873 per FEU, up $552 or 8.73%, approaching the $7,000 mark. European and Mediterranean routes also rose, with the European base port at $3,158 per TEU and the Mediterranean base port at $4,260 per TEU.
The Santos route in South America reached $8,212 per TEU, up $621 or 8.18%, becoming one of the most expensive routes globally. The Australia-New Zealand route hit $1,808 per TEU. Near-sea routes showed divergence: Japan routes remained flat, Southeast Asia edged up to $689 per TEU, and the South Korea route jumped to $188 per TEU, signaling the start of price transmission to short-haul routes.
In addition to base rates, major shipping lines have imposed peak season surcharges since June, with US routes typically seeing surcharges of $1,000 to $1,500. This means the actual logistics costs borne by exporters are much higher than published rates, further squeezing order profit margins.
Suez Canal Adds 12% Surcharge Despite Rising Traffic
The Suez Canal Authority announced new transit surcharges, with most vessel types facing a 12% increase, effective July 15, 2026. Container ships will continue to pay 12%, dry bulk carriers rise from 10% to 22%, and fully loaded crude oil tankers from 25% to 37%. Car carriers northbound see surcharges rise from 14% to 26%, while southbound remains at 12%.
The background to this surcharge increase is the recovery in canal traffic. In April 2026, the total number of vessels transiting the Suez Canal reached 1,182, up 14% year-on-year. Oil tanker transits surged 28% to 529 vessels. Monthly revenue hit $419 million, up 27% year-on-year, the highest since early 2024.
Previously, Houthi attacks on commercial vessels in the Red Sea forced many ships to reroute around the Cape of Good Hope, reducing Suez traffic. However, the 2026 US-Iran conflict blocked the Strait of Hormuz, diverting some vessels to Red Sea alternatives and indirectly boosting Suez Canal traffic. The Authority chose this moment to raise surcharges, maximizing revenue amid recovering demand. For textile exporters already under pressure, this means an additional hundreds of dollars per container in transit costs.
Textile Exports Edge Up, But Freight Eats Profits
According to Chinese customs data, from January to May 2026, China's textile and apparel exports reached $116.73 billion, up only 0.1% year-on-year. Textile exports were $59.48 billion, up 1.7%, while apparel exports fell 1.6% to $57.24 billion. During the same period, total goods exports grew 11.8% to 11.91 trillion yuan.
The textile export growth rate is far below the overall trade level, meaning textile companies neither benefit from the export boom nor escape the rising freight costs. For a US West Coast route, the actual freight cost, including peak surcharges, has risen from around $4,000 at the start of the year to over $7,000. For textile orders with profit margins of only 5-10%, freight costs now account for over 30% of the order value, significantly increasing the risk of losses.